Upcoming IPO: Muthoot Fincorp Ltd, a part of the Muthoot Pappachan Group, has submitted draft documents to market regulator Sebi to raise ₹3,000 crore through an Initial Public Offering (IPO), with the proceeds aimed at strengthening its capital base.
According to the Draft Red Herring Prospectus (DRHP) filed on Wednesday, the proposed IPO will comprise entirely of a fresh issue of equity shares.
The funds raised through the issue will be utilised to enhance the company's Tier-I capital base and meet future capital needs. This will include supporting onward lending and financing the company's business growth and expansion.
Kotak Mahindra Capital Company, Morgan Stanley India Company, JM Financial and SBI Capital Markets have been appointed as the book running lead managers for the IPO.
About the company
Muthoot Fincorp is part of the Muthoot Pappachan Group, which traces its legacy back to 1887. The company is a diversified Non-Banking Financial Company (NBFC), with gold loans forming its core business. Its offerings also include business loans, loans against property, supply chain finance, digital loans, microfinance and housing finance, among other products.
The company has been operating in the gold loan segment for more than two decades. It has a pan-India branch network and also offers its services through its digital platform, Muthoot FinCorp ONE.
As of March 31, 2026, Muthoot Fincorp had assets under management (AUM) of ₹73,444.72 crore and operated 5,610 branches across India. Its digital platform had 4.26 million users.
According to the DRHP, citing a Crisil report, the company's gold loan AUM recorded a compound annual growth rate (CAGR) of 59.04 per cent between March 2024 and March 2026, making it the fastest-growing player among its peers.
The company's financial performance also improved significantly in FY26. Consolidated profit rose to ₹1,847.62 crore from ₹607.90 crore in the previous fiscal, while consolidated revenue from operations increased to ₹11,203.81 crore from ₹8,497.69 crore in FY25.
Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.
